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Avado Brands Inc. Chairman and CEO Tom DuPree Jr. has snapped up more than 1 million shares in his company in just over a month, upping his stake to more than 30 percent.
His open market buying spree has fueled gossip on Internet investor message boards about the CEO's possible plans for the troubled casual restaurant company (Nasdaq: AVDO), which they suspect may include taking some of the company private.
There also were questions raised about DuPree's buying large amounts of shares after crying poor during recent divorce proceedings, claiming his assets consisted of just $3,600 plus his stock holdings.
But Avado communications manager Dianne Lively Yost said DuPree simply "sees a value" in the stock - although analysts are not expecting improved results any time soon.
DuPree declined to talk to Atlanta Business Chronicle about his activities, citing the new SEC fair disclosure rule (Regulation FD).
"Because the fourth quarter is almost over, he is not comfortable talking about the company or going into detail," Lively Yost said. 'When we disseminate information, we will disseminate it widely."
Avado's fourth-quarter results are set for release at the end of January. No definitive date has been set, Lively Yost said. "Right now, we...